Author: Wiehann Olivier

Bitcoin and other cryptocurrencies are seen by many as a new form of money. Others query whether these alternative assets truly meet the definition of money from a practical point of view. ‘Money’ is defined by three pillars being: a store of value; a medium of exchange; and as a unit of account. This latter pillar is the point of contention given the volatility associated with cryptocurrencies such as bitcoin. The volatility of cryptocurrencies made it difficult for users to transact in these cryptocurrencies as the price would fluctuate strongly on a second-to-second basis. This exposed holders of cryptocurrency to…